INFRASTRUCTURE BOND OVER-SUBSCRIBED BY E70M

MBABANE – The E150 million infrastructure bond was oversubscribed by over E70 million.  

The Central Bank of Swaziland (CBS) on behalf of the Government of Swaziland, issued an eight-year infrastructure bond on October 26, 2017. The bond was for an amount of E150 million with a green-shoe option of 50 per cent of the amount on offer. The bond was fully subscribed and allotments made amounted to E222.02 million after exercising the green shoe option.  The coupon rate was set at 10 per cent while the bond attracted an average yield of 10.698 per cent.
Preliminary debt figures for the month ending October 31, 2017 indicate that total public debt stood at E12.6 billion, an equivalent of 21.5 per cent of Growth Domestic Product (GDP). CBS also reported that this showed an increase of 3.3 per cent from E12.2 billion recorded in September 2017.

As at the end of October 2017, external debt stood at E5.6 billion, an equivalent of 9.5 per cent of GDP. It was stated that this figure showed that external debt levels had remained unchanged over the month under review, despite some debt service payments made. “This was a result of a slight weakening of the Lilangeni against foreign major currencies over the past month,” said CBS. Domestic debt stood at E7 billion at the end of October 2017, an equivalent of 12.0 per cent of GDP. This figure showed that domestic debt increased by 4.5 per cent over the previous month when compared to E6.7 billion that was recorded in September 2017. “The increase is due to the issuance of an infrastructure bond in the month under review,” reported CBS. Of the outstanding public domestic debt, E1.30 billion accounts for CBS Advance to Government, treasury bills stood at E2.0 billion, Promissory Notes stood at E0.11 billion, Government Bonds Issuance Programme stood at E2.7 billion,  while Supplier’s Bond and Infrastructure Bond accounted for E0.57 billion and E0.26 billion respectively.

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